.the opposite of Monopoly. July 27, 2008

.authored by Something.of.Substance.

The economy can no longer be dismissed as a numbers game. Classical and neo-classical economic theory has long centered on a growth-oriented model to describe the flow of funds and resources with endless growth being the assumption. However, without professing to have more than a layman’s understanding of the global economy, the very idea of “endless growth” just doesn’t sit well with me.

I learned in my high school economics class that who controls the resources controls the economy. This makes sense because if you don’t have anything to sell nor have anything to make anything to sell, you cannot buy. If you aren’t buying or selling, you are dependant on someone else. If you are dependant, you have little to no control. And, the materials you are buying, selling, or utilizing are (primarily) natural resources.

Yet, here we stand on the brink of extinguishing the world’s supply of natural resources. Obviously, a growth-based model of economics is flawed if we, as a whole, consume faster than we replenish. Why, then, would we keep pushing a growth-based model of economy theory instead of a sustainable one?

Because, it’s scary for the pockets of the Top 1% of the money-makers. Telling consumers (and especially those in America) that we need to become more sustainable in our lifestyles rather than attempt to keep acquiring a bigger, better, flashier life would mean the government would have to pose the Question That No One Will Ask:

what if the “recession” that we are currently trying to stimulate our way out of isn’t simply a temporary measure but a backlash to the consumption of our natural resources to the point that “growth” simply is no longer a possibility? What if our current recession isn’t current, but permanent?

Not buying what I’m trying to sell you? Let’s think about some very basic common-knowledge facts, some figures and hear what some noted economists are trying to tell you. Bear with me while I introduce some critical statistics to understanding where we, as a society, are going wrong.

Take, for example, the $110 billion in “economic incentive” refunds returned earlier in 2008 by the U.S. government as a means of “stimulating” the economy in the hopes of saving it from recession. Instead of encouraging the American public to save their funds for a potentially-extended lean time coming up for the world’s economy or invest in more sustainable measures to protect against a more dower future, big-box corporations such as Wal-Mart offered free rebate check cashing to get consumers in the store as well as discounts on electronics and “key groceries”- items such as sports drinks, cereal bars, shampoo, and pre-packaged, processed lunch meat- to keep them spending the meager amount distributed by the government. And, it worked, Wal-Mart saw their profits rise 6.9% in the second quarter of 2008 while the economy as a whole fell 3% over first quarter.

The retail sector, as stated by the National Retail Federation, is expected to boom by seeing $43 billion-or over 39%- of the “incentive” refunds. However, retail isn’t the only area of society booming in these recession times. Much of the other 61% of the “stimulus” money should have been directly deposited in the bank accounts of Big Oil. Oil companies claimed to rake in between 130% – 150% more than they did the previous quarter- despite some oil CEO’s going on record and announcing they could not reduce gas prices because the industry was already in a deficit and no profits could be expected.

And, the negative economic growth isn’t limited to America. With the economy becoming increasingly entangled in politically-ensconced global markets, how we do affects even more other nations. China, for example, saw their countries economy slow by 0.5% even with the all the money being poured in for Olympic Games.

You still may believe this has little to do with you, but think about it: are you seeing any of that $43 billion in retail profits? Is the unemployment rate decreasing? Are wages increasing? No. Instead, exactly the opposite is happening.

Americans are continuing to pump money into the economy in the hopes of saving themselves when what they should be doing is the opposite; Americans are consuming in the hopes of growing*. Ecological economist Bill Rees was very unpopular when he first introduced the idea of the Ecological Footprint Analysis, or Eco print, to measure human demand on the environment and, subsequently, the economy. However, he has lately become revered for his idea, as published in AdBusters #78 that society needs to accept that the idea of endless growth “distorts reality and is leading to an ecological disaster” and the only way of saving ourselves from the inevitable permanent recession is by sustaining rather than consuming.

This permanent recession I keep casually mentioning is closer than we think. Countries such as Haiti, Egypt, Somalia, and Bangladesh are already experiencing food riots and starvation. Prices of staple food items (juice boxes and shampoo not withstanding) in America are already out of reach for millions of the working poor and are starting to become luxury items for the continually disintegrating middle class.

Our only hope, then, is to sustain ourselves. If our government refuses to acknowledge the black-and-white statistics of where the global economy is headed and refuses to sufficiently correct the shortage of resources necessary to supply for its people, then it becomes our responsibility as individuals to act.

Sustainability can mean anything from saving where you would normally spend all the way to the radical end of non-consumption. But, the majority of us have to at least meet somewhere in the middle of these two extremes. The easiest way to ensure that we survive in the hopes of growth is by protecting our food supply as food is a resource rapidly disappearing in accessibility. There has increasingly been a call by eco-economists for more small-scale farming, local markets, niche markets, and personal food growth responsibility. Vegetarian and vegan diets are heavily promoted. Community garden movements are rapidly mobilizing in urban areas.

It’s still not enough. Until every member of society recognizes that spending makes them no happier, that their money is lining the pockets of those who can afford to give it away and that endless consuming is, quite literally, the vicious cycle that is killing us, the government and the corporations that support it will not change their ways. They will not announce any differently than they have. And, we will continue down this spiral. If our government won’t acknowledge the looming truth and our contemporaries are too self-absorbed to stop contributing to the distortion, we can only continue to do what we can to sustain ourselves and hope to educate others to do the same.

*- this sounds very similar to John McCain’s plan for the economy, but that’s a whole other blog.